It really caught me by surprise that the wave 2 of major wave C can drag for so long.
Mini wave (iii) simply refused to end, it has formed 9 minute waves so far. After the completion of mini wave (iii), mini wave (iv) and (v) can easily take another 2 to 3 weeks.
I am looking for a 100% retracement for wave 2 as shown below.
However if it can close above 12,810 and continue to pull away I will have to abandon the above wave count and see where is my mistake.
Bursa Malaysia
Plantation stocks were very strong in the last three trading days on expectation of good 4th quarter (Oct 2011 - Dec 2011) earning due to be announced in February 2012. Current CPO price is about Rm3100/mt.
In the 2008 bear market for stocks, CPO price dropped from Rm 3650 to Rm1550. Similar to the stock indices, it rebounded in 3 waves to Rm3800 by February 2011. Since then it has dropped in 5 mini waves to Rm2870 by October 2011 before rebounded to the current price of around Rm3100. It may move to Rm 3200+ by next month, however if Dow started its wave 3 of major wave C, I expect the CPO price to move down together with the stock markets.
Similar to Dow, CPO price is currently forming its wave 2 of major wave C.
As I have mentioned earlier, if Dow can stay above 12,810 and move higher, I expect the CPO price to move higher in tandem with the Dow as shown below. One may ask why the corrective wave 4 has 5 sub-waves?
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